TY  - RPRT
        AU  - Torgler, Benno
AU  - Schneider, Friedrich
        TI  - Shadow Economy, Tax Morale, Governance and Institutional Quality: A Panel Analysis
        PY  - 2007/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2563
        UR  - https://www.iza.org/index.php/publications/dp2563
        AB  - This paper analyses how governance or institutional quality and tax morale affect the shadow economy, using an international country panel and also within country data. The literature strongly emphasizes the quantitative importance of these factors to understand the level and changes of shadow economy. However, the limited number of investigations use cross-sectional country data with a relatively small number of observations, and hardly any paper has investigated tax morale and provides evidence using within country data. Using more than 25 proxies that measure governance and institutional quality we find strong support that its increase leads to a smaller shadow economy. Moreover, an increase in tax morale reduces the size of the shadow economy.
        KW  - shadow economy
KW  - tax morale
KW  - governance quality
KW  - government intervention
KW  - corruption
        ER  -